Brand differentiation refers to the process by which businesses set themselves apart from similar businesses in the marketplace. They do this in order to gain a competitive advantage, earn more money, build customer loyalty and gain greater brand recognition.
Done correctly, differentiation can have a direct and positive impact on your bottom line and ensure that customers choose your product or service over your competitors’ every time.
Therefore, if you’re looking to ensure your brand stands out from the rest of the crowd, below are a few of the most effective strategies you can use.
You can price differently by charging a lower price than your competitors or charging a premium for items which are perceived to have a higher value such as jewelry and luxury cars.
Charging a reduced price can bring in many customers while charging a premium will attract the customers who are willing to pay more for quality.
Whatever the case, ensure that the price you charge appeals to your particular market so you don’t drive away customers who are repelled by high prices or those who consider low prices to be an indicator of poor quality.
Create Experiences For Your Customers
Ensuring that your customers view the purchase of your goods or services as a positive experience is one way to differentiate your business.
For instance, if you own a nail bar, offering your customers a glass of wine as they have their nails done is one way to ensure that they keep coming back to you.
Rebrand An Old Product
Rebranding an old product is a great way to give it a new lease on life and improve its brand recognition. This will have the effect of attracting new customers who are willing to spend a bit more.
It will also ensure that your product stands out from whatever the competition has to offer. You can rebrand a product by changing its packaging or updating its logo. You could also merge with another company. Finally, you can change your target market and relaunch it to make more customers aware of it.
Become known as a brand that supports social and environmental causes such as the poor, global warming, health and others.
You can do this by donating a percentage of your profits to a charity. Another thing you can do is take part in cleanup or tree planting exercises. Furthermore, you can use environmentally friendly production materials.
This will not only help to differentiate your brand, but it will also attract more customers. Especially, millenials and Generation Z who are passionate about social justice.
Practice Emotional Branding
This type of branding appeals to a customer’s emotions. It helps them visualize how they’ll feel if they use your product or service. For instance, a perfume brand could hint that women will feel more sensual by using a particular scent.
Final Thoughts On Brand Differentiation
Brand differentiation is a great way to increase brand recognition. It can also attract more customers and improve the perception of your brand. Ultimately, this will raise your profits.
There are many strategies that you can use to differentiate. These include offering better prices, ensuring that customer know your business for its quality, attaching your company’s name to a good cause and appealing to customer’s emotions.
By choosing the right strategy, you can help your company stand out from the crowd. This will allow you to attract even more customers who will increase your bottom line.